Thursday, February 7, 2013

How Can Predictive Analysis Help My Business?

As CEOs, have you ever felt that you could perform better
and derive better results from your team if you had the power to foresee the
effects of and reactions to your business strategies, especially social media
strategies? Nine out of ten times, the answer is yes, isn’t it?

So, the big question is, how can we get that still elusive
but highly exclusive ‘power to foresee’? The answer is Predictive Analysis.
Wikipedia defines Predictive Analysis as a process that “encompasses a variety
of techniques from statistics, modeling, machine learning and data mining that
analyze current and historical facts to make predictions about future events.”

Let me simplify this further. Using complex mathematical
and statistical methodologies, Predictive Analysis allows organizations to
scrutinize their enterprise’s customer data – both existing and current, and
relating it to customer actions – to find a distinctive and definite recurring
pattern in customer behavior. Based on the scrutiny results, a set of
characteristics (called predictors) are identified. These specific predictors
guide and help businesses to extract essential business insights and guide
their future decision making.

Where Is Predictive Analysis Useful?

Predictive Analysis is especially useful in those business
verticals which have to deal with large volumes of customer data like
telecommunications, financial institutions, insurance companies, retail,
healthcare, travel etc.

Benefit for Organizations

·With Predictive Analysis, organizations become more confident because
they have the power to predict future business scenarios and take appropriate
actions to tackle the said scenarios.

·Relying on Predictive Analysis, organizations can do two things at once
– predict problems or issues and also be armed with solutions for the problems.

·Enhance Customer Loyalty. Find customers displaying similar traits and
characteristics and group them and offer them those services and products in
line with their requirements.

·Improve Products. Identify faults in products and services early and
prevent it from escalating.

·Use the forecasting abilities to beat competition.

·Identify new business opportunities, new customers and thereby expand
your market reach.

When used correctly and optimally by an organization,
Predictive Analysis transforms that organization into a Smart Enterprise. It
yields a ‘power to predict’ whereby the said organization can implement
efficient business practices, enhance product development process, strengthen
customer relations and most importantly reach goals and make profits.

We, at Shout Analytics, an advanced social media analytics
product, make Predictive Analysis possible for businesses. To know more, write
to us at info@shoutanalytics.com